Gas prices have gone down

Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the Kommersant newspaper on the gas prices dynamics in the EU.

Gas prices in Europe continue to decline due to strong supplies of liquefied natural gas (LNG), creating some oversupply, and high stocks in storage. Gas futures have stabilized, the price for November has so far settled at about $1.3 thousand per 1 thousand cubic meters. In the spot market, the cost of gas “day ahead” continues to fall and already reaches $645 per 1,000 cubic meters.

According to Sergey Kondratiev, a decrease in gas prices to the level of $1.1-1.2 thousand per 1 thousand cubic meters can create conditions for an increase in demand by 5-10% relative to the current level. First of all, in energy-intensive industries (metallurgy, production of building materials, gas chemistry). However, according to the expert, consumption growth is unlikely to be significant, including due to the EU policy to limit demand.